AUSTIN, Texas, Aug. 8, 2011 /PRNewswire/ -- Luminex Corporation
(NASDAQ: LMNX) today announced financial results for the second
quarter ended June 30, 2011.
Financial and operating highlights include the following:
(Logo:
http://photos.prnewswire.com/prnh/20100104/LUMINEXLOGO)
- Consolidated second quarter revenue was $47.6 million, a 43% increase over the second
quarter of 2010
- Second quarter 2011 consumable sales of $18.4 million, a 90% increase over the second
quarter of 2010
- Second quarter 2011 shipments of 248 multiplexing analyzers
that included 62 MAGPIX® systems, resulting in cumulative
life-to-date multiplexing analyzer shipments of 8,145, up 13% from
a year ago
- Consolidated gross profit margin was 71% for the second quarter
of 2011
- Operating income for the second quarter of 2011 was
$8.8 million compared with operating
income of $2.3 million for the same
period last year
- Received CE marking for the 15-pathogen xTAG® Gastrointestinal
Pathogen Panel (GPP)
- Signed a global sales and distribution agreement with Life
Technologies™ Corporation (NASDAQ: LIFE) for our MAGPIX
multiplexing instrument for the research market
- Completed the acquisition of privately-held EraGen®
Biosciences, Inc., an innovator in molecular diagnostic testing
technologies for infectious disease and genetic applications
- Received 510(k) clearance from the U.S. Food and Drug
Administration (FDA) for the xTAG Respiratory Viral Panel FAST (RVP
FAST) in early July
"Luminex delivered another strong performance in the second
quarter of 2011," said Patrick J.
Balthrop, president and chief executive officer of
Luminex. "Our consumable, royalty revenue and assay
categories each demonstrated excellent growth over the prior year
period. Consumable revenue reached an all-time record in the second
quarter, royalty revenue grew 52% while our assay group, led by our
Cystic Fibrosis and Respiratory Viral Panel franchises, generated
solid 24% growth. In addition, we continue to expand our installed
base at a healthy rate and look forward to ramping up our MAGPIX
placements."
"During the quarter we achieved several significant milestones,
including receipt of CE Mark for our novel xTAG Gastrointestinal
Pathogen Panel, the acquisition of EraGen Biosciences, and the
expansion of our distribution channel for MAGPIX," added Balthrop.
"These accomplishments will help ensure that Luminex delivers high
performance solutions to our customers and long term value for our
shareholders," Balthrop concluded.
REVENUE
SUMMARY
(in
thousands, except percentages)
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
Variance
|
|
|
2011
|
|
2010
|
|
($)
|
|
(%)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System sales
|
$
9,135
|
|
$
7,896
|
|
$ 1,239
|
|
16%
|
|
Consumable sales
|
18,397
|
|
9,698
|
|
8,699
|
|
90%
|
|
Royalty revenue
|
7,412
|
|
4,861
|
|
2,551
|
|
52%
|
|
Assay revenue
|
9,261
|
|
7,439
|
|
1,822
|
|
24%
|
|
All other revenue
|
3,433
|
|
3,348
|
|
85
|
|
3%
|
|
|
$
47,638
|
|
$
33,242
|
|
$ 14,396
|
|
43%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
Variance
|
|
|
2011
|
|
2010
|
|
($)
|
|
(%)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System sales
|
$
16,814
|
|
$
14,595
|
|
$ 2,219
|
|
15%
|
|
Consumable sales
|
33,399
|
|
19,517
|
|
13,882
|
|
71%
|
|
Royalty revenue
|
14,668
|
|
10,710
|
|
3,958
|
|
37%
|
|
Assay revenue
|
18,845
|
|
15,099
|
|
3,746
|
|
25%
|
|
All other revenue
|
7,187
|
|
6,573
|
|
614
|
|
9%
|
|
|
$
90,913
|
|
$
66,494
|
|
$ 24,419
|
|
37%
|
|
|
|
|
|
|
|
|
|
Consolidated revenue for the second quarter of 2011 was
$47.6 million, a 43% increase over
consolidated revenue of $33.2 million
for the second quarter of 2010. GAAP net income for the
second quarter of 2011 was $4.6
million, or $0.11 per diluted
share, compared with GAAP net income of $0.9
million, or $0.02 per diluted
share, for the prior year period. Included in SG&A expenses for
the current quarter are approximately $1.3
million of acquisition costs related to the EraGen
Biosciences transaction representing an approximate $0.03 per diluted share one time burden.
Exclusive of acquisition costs, the operating activities of
EraGen incorporated in our consolidated financial results for the
quarter were immaterial.
Net income for the second quarter of 2011 included non-cash
charges of $3.0 million in stock
compensation expense associated with ASC 718 and $2.6 million of depreciation and amortization
expense. Net income for the second quarter of 2010 included
non-cash charges of $2.4 million
in stock compensation expense associated with ASC 718 and
$2.1 million of depreciation and
amortization expense.
LUMINEX
CORPORATION
REPORTABLE SEGMENT
HIGHLIGHTS
(in
thousands, except percentages)
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
June
30,
|
|
Variance
|
|
|
|
2011
|
|
2010
|
|
($)
|
|
(%)
|
|
|
|
(unaudited)
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
Technology and strategic
partnerships
|
$
36,211
|
|
$
25,227
|
|
$ 10,984
|
|
44%
|
|
Assays and related
products
|
11,427
|
|
8,015
|
|
3,412
|
|
43%
|
|
Total Revenue
|
47,638
|
|
33,242
|
|
14,396
|
|
43%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
|
Technology and strategic
partnerships
|
11,572
|
|
3,616
|
|
7,956
|
|
220%
|
|
Assays and related
products
|
(2,775)
|
|
(1,351)
|
|
(1,424)
|
|
-105%
|
|
Total Operating
income
|
8,797
|
|
2,265
|
|
6,532
|
|
288%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June
30,
|
|
Variance
|
|
|
|
2011
|
|
2010
|
|
($)
|
|
(%)
|
|
|
|
(unaudited)
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
Technology and strategic
partnerships
|
$
68,146
|
|
$
50,443
|
|
$ 17,703
|
|
35%
|
|
Assays and related
products
|
22,767
|
|
16,051
|
|
6,716
|
|
42%
|
|
Total Revenue
|
90,913
|
|
66,494
|
|
24,419
|
|
37%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
|
Technology and strategic
partnerships
|
20,228
|
|
7,912
|
|
12,316
|
|
156%
|
|
Assays and related
products
|
(3,137)
|
|
(1,899)
|
|
(1,238)
|
|
-65%
|
|
Total Operating
income
|
17,091
|
|
6,013
|
|
11,078
|
|
184%
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL OUTLOOK AND GUIDANCE
The Company raises its 2011 annual revenue guidance to a range
of $180 million to $185 million from
$163 to $170
million. The updated range of annual revenue is an
increase of between 27 to 31 percent over reported 2010 annual
revenue and includes an anticipated contribution of $5 to $7 million
from EraGen Biosciences.
CONFERENCE CALL
Management will host a conference call to discuss the operating
highlights and financial results for the second quarter ended
June 30, 2011, on Monday, August 8, 2011, at 4:00 p.m. Central time/ 5:00 p.m. Eastern time. The conference call
will be webcast live and will be accompanied by a slide
presentation, both of which may be accessed at Luminex
Corporation's website at http://www.luminexcorp.com. Simply
log on to the web at the address above, go to the Company section
and access the Investor Relations link. Please go to the
website at least 15 minutes prior to the call to register,
download and install any necessary audio/video software. If you are
unable to participate during the live webcast, the call and slides
will be archived for six months on the website using the 'replay'
link.
Luminex develops, manufactures and markets proprietary
biological testing technologies with applications throughout the
life sciences industry. The Company's xMAP® system is an
open-architecture, multi-analyte technology platform that delivers
fast, accurate and cost-effective bioassay results to markets as
diverse as pharmaceutical drug discovery, clinical diagnostics and
biomedical research, including the genomics and proteomics research
markets. The Company's xMAP technology is sold worldwide and
is in use in leading research laboratories as well as major
pharmaceutical, diagnostic and biotechnology companies.
Further information on Luminex or xMAP can be obtained on the
Internet at http://www.luminexcorp.com.
Statements made in this release that express Luminex's or
management's intentions, plans, beliefs, expectations or
predictions of future events are forward-looking statements.
Forward-looking statements in this release include statements
regarding: the expansion of our installed base; expanded
distribution for our MAGPIX system; including execution of our
distribution relationship with Life Technologies; the development
progress of our NeoPlex4 assay product; market acceptance of our
RVP FAST and GPP assay products; integration of EraGen Biosciences,
Inc.; the ability of our investment in current initiatives and new
products to deliver high performance solutions, and drive long-term
value for our shareholders; and, projected 2011 revenue. The
words "believe," "expect," "intend," "estimate," "anticipate,"
"will," "could," "should" and similar expressions are intended to
further identify such forward-looking statements for purposes of
the Private Securities Litigation Reform Act of 1995. It is
important to note that the Company's actual results or performance
could differ materially from those anticipated or projected in such
forward-looking statements. Factors that could cause
Luminex's actual results or performance to differ materially
include risks and uncertainties relating to, among others, market
demand and acceptance of Luminex's products and technology, the
Company's dependence on strategic partners for development,
commercialization and distribution of products, concentration of
the Company's revenue in a limited number of strategic partners,
fluctuations in quarterly results due to a lengthy and
unpredictable sales cycle and bulk purchases of consumables,
Luminex's ability to scale manufacturing operations and manage
operating expenses, gross margins and inventory levels, potential
shortages of components, competition, the timing of regulatory
approvals, the implementation, including any modification, of the
Company's strategic operating plans, the uncertainty regarding the
outcome or expense of any litigation brought against Luminex, risks
relating to Luminex's foreign operations, risks and uncertainties
associated with implementing our acquisition strategy and the
ability to integrate acquired companies, or selected assets into
our consolidated business operations, including the ability to
recognize the benefits of our acquisitions, as well as the risks
discussed under the heading "Risk Factors" in Luminex's Reports on
Forms 10-K and 10-Q, as filed with the Securities and Exchange
Commission. The forward-looking statements, including the
financial guidance and 2011 outlook, contained herein represent the
judgment of Luminex as of the date of this press release, and
Luminex expressly disclaims any intent, obligation or undertaking
to release publicly any updates or revisions to any forward-looking
statements to reflect any change in Luminex's expectations with
regard thereto or any change in events, conditions or circumstances
on which any such statements are based.
LUMINEX
CORPORATION
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(in
thousands)
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
55,610
|
|
$
89,487
|
|
Restricted cash
|
1,004
|
|
1,002
|
|
Short-term
investments
|
29,983
|
|
28,404
|
|
Accounts receivable,
net
|
15,686
|
|
20,936
|
|
Inventories,
net
|
29,327
|
|
24,932
|
|
Deferred income
taxes
|
1,320
|
|
4,225
|
|
Prepaids and
other
|
4,048
|
|
2,732
|
|
|
|
|
|
|
Total current
assets
|
136,978
|
|
171,718
|
|
|
|
|
|
|
Property and equipment,
net
|
23,669
|
|
22,084
|
|
Intangible assets,
net
|
32,241
|
|
12,944
|
|
Deferred income taxes
|
8,492
|
|
6,363
|
|
Long-term investments
|
19,757
|
|
6,021
|
|
Goodwill
|
46,269
|
|
42,250
|
|
Other
|
6,020
|
|
4,430
|
|
|
|
|
|
|
Total assets
|
$
273,426
|
|
$
265,810
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts
payable
|
$
4,558
|
|
$
7,621
|
|
Accrued
liabilities
|
6,407
|
|
7,444
|
|
Deferred
revenue
|
3,673
|
|
3,866
|
|
Current portion of long
term debt
|
466
|
|
849
|
|
|
|
|
|
|
Total current
liabilities
|
15,104
|
|
19,780
|
|
|
|
|
|
|
Long-term debt
|
3,119
|
|
3,351
|
|
Deferred revenue
|
4,034
|
|
4,303
|
|
Other
|
3,601
|
|
3,511
|
|
|
|
|
|
|
Total liabilities
|
25,858
|
|
30,945
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Common stock
|
41
|
|
41
|
|
Additional paid-in
capital
|
298,676
|
|
295,422
|
|
Accumulated other
comprehensive gain
|
1,495
|
|
1,150
|
|
Accumulated
deficit
|
(52,644)
|
|
(61,748)
|
|
|
|
|
|
|
Total stockholders'
equity
|
247,568
|
|
234,865
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
273,426
|
|
$
265,810
|
|
|
|
|
|
LUMINEX
CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
47,638
|
|
$
33,242
|
|
$
90,913
|
|
$
66,494
|
|
Cost of revenue
|
13,812
|
|
10,082
|
|
26,359
|
|
20,558
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
33,826
|
|
23,160
|
|
64,554
|
|
45,936
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
7,945
|
|
6,441
|
|
15,515
|
|
11,921
|
|
Selling, general and
administrative
|
17,084
|
|
14,454
|
|
31,948
|
|
28,002
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
25,029
|
|
20,895
|
|
47,463
|
|
39,923
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
8,797
|
|
2,265
|
|
17,091
|
|
6,013
|
|
Interest expense from
long-term debt
|
(79)
|
|
(112)
|
|
(162)
|
|
(228)
|
|
Other income,
net
|
108
|
|
114
|
|
215
|
|
241
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
8,826
|
|
2,267
|
|
17,144
|
|
6,026
|
|
Income taxes
|
(4,183)
|
|
(1,383)
|
|
(8,040)
|
|
(3,267)
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
4,643
|
|
$
884
|
|
$
9,104
|
|
$
2,759
|
|
|
|
|
|
|
|
|
|
|
Net income per share,
basic
|
$
0.11
|
|
$
0.02
|
|
$
0.22
|
|
$
0.07
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing net
income per share, basic
|
41,262
|
|
41,001
|
|
41,251
|
|
40,893
|
|
|
|
|
|
|
|
|
|
|
Net income per share,
diluted
|
$
0.11
|
|
$
0.02
|
|
$
0.21
|
|
$
0.07
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing net
income per share, diluted
|
42,446
|
|
42,281
|
|
42,398
|
|
41,986
|
|
|
|
|
|
|
|
|
|
The Company has reclassified certain amounts previously
classified as a component of selling, general and administrative
expenses to research and development expenses to conform to the
current period presentation. This reclassification was $0.6 million and $1.1
million for the three and six months ended June 30, 2010, and was not material to the
Company's consolidated financial statements.
LUMINEX
CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
Net income
|
$
4,643
|
|
$
884
|
|
$
9,104
|
|
$
2,759
|
|
Adjustments to reconcile
net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,622
|
|
2,121
|
|
5,138
|
|
4,284
|
|
Stock-based
compensation
|
2,993
|
|
2,439
|
|
5,540
|
|
4,606
|
|
Deferred income tax
benefit
|
2,054
|
|
911
|
|
3,379
|
|
2,505
|
|
Excess income tax benefit
from employee stock-based awards
|
(1,501)
|
|
(1,524)
|
|
(3,705)
|
|
(1,524)
|
|
Other
|
234
|
|
(72)
|
|
305
|
|
263
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
68
|
|
(1,042)
|
|
6,656
|
|
5,210
|
|
Inventories,
net
|
1,793
|
|
(547)
|
|
1,207
|
|
(2,113)
|
|
Other assets
|
(164)
|
|
(818)
|
|
(1,186)
|
|
(745)
|
|
Accounts
payable
|
(1,510)
|
|
721
|
|
(4,254)
|
|
(3,466)
|
|
Accrued
liabilities
|
1,953
|
|
2,038
|
|
167
|
|
(1,345)
|
|
Deferred
revenue
|
(317)
|
|
(37)
|
|
(460)
|
|
740
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
12,868
|
|
5,074
|
|
21,891
|
|
11,174
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
Purchases of
available-for-sale securities
|
(22,201)
|
|
(9,054)
|
|
(29,247)
|
|
(21,667)
|
|
Maturities of
available-for-sale securities
|
7,256
|
|
12,998
|
|
14,177
|
|
16,193
|
|
Purchase of property and
equipment
|
(2,644)
|
|
(3,985)
|
|
(3,798)
|
|
(5,449)
|
|
Business acquisition
consideration, net of cash acquired
|
(33,914)
|
|
(5,036)
|
|
(33,914)
|
|
(5,036)
|
|
Increase in restricted
cash
|
-
|
|
(1,000)
|
|
-
|
|
(1,000)
|
|
Purchase of cost method
investment
|
-
|
|
(2,000)
|
|
(2,000)
|
|
(2,000)
|
|
Acquired technology
rights
|
(87)
|
|
(1,200)
|
|
(87)
|
|
(1,200)
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing
activities
|
(51,590)
|
|
(9,277)
|
|
(54,869)
|
|
(20,159)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
Payments on
debt
|
(885)
|
|
(895)
|
|
(885)
|
|
(895)
|
|
Proceeds from issuance of
common stock
|
590
|
|
301
|
|
818
|
|
1,440
|
|
Payments for stock
repurchases
|
(1,436)
|
|
-
|
|
(4,686)
|
|
-
|
|
Excess income tax benefit
from employee stock-based awards
|
1,501
|
|
1,524
|
|
3,705
|
|
1,524
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by
financing activities
|
(230)
|
|
930
|
|
(1,048)
|
|
2,069
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency
exchange rate on cash
|
1
|
|
86
|
|
149
|
|
59
|
|
Change in cash and cash
equivalents
|
(38,951)
|
|
(3,187)
|
|
(33,877)
|
|
(6,857)
|
|
Cash and cash equivalents,
beginning of period
|
94,561
|
|
87,173
|
|
89,487
|
|
90,843
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end
of period
|
$
55,610
|
|
$
83,986
|
|
$
55,610
|
|
$
83,986
|
|
|
|
|
|
|
|
|
|
|
|
Contacts:
|
Harriss T. Currie
|
Matthew Scalo
|
|
|
Vice President, Finance and
Chief Financial Officer
|
Sr. Director of Investor
Relations
|
|
|
512-219-8020
|
512-219-8020
|
|
|
hcurrie@luminexcorp.com
|
mscalo@luminexcorp.com
|
|
|
|
|
|
|
SOURCE Luminex Corporation